Boston Scientific (NYSE:BSX) - Share price, News & Analysis

Q: What is the Fair Price of BSX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BSX ($40.94) is trading below our estimate of [[fair value]] ($54.16)

BSX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	0/6

BSX Stock Overview

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.

Rewards

Trading at 24.4% below our estimate of its fair value

Earnings are forecast to grow 24.81% per year

Earnings grew by 57.6% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Boston Scientific Competitors

Edwards Lifesciences

NYSE:EW

US$65.8b

Becton Dickinson

NYSE:BDX

US$72.5b

Stryker

NYSE:SYK

US$81.6b

Intuitive Surgical

NasdaqGS:ISRG

US$85.8b

Price History & Performance

Summary of all time highs, changes and price drops for Boston Scientific
Historical stock prices
Current Share Price	US$40.94
52 Week High	US$47.50
52 Week Low	US$34.98
Beta	0.85
1 Month Change	8.16%
3 Month Change	0.22%
1 Year Change	-8.41%
3 Year Change	-5.23%
5 Year Change	55.02%
Change since IPO	856.26%

Recent News & Updates

Jul 27

Boston Scientific Corporation (NYSE:BSX) Shares Could Be 23% Below Their Intrinsic Value Estimate

Does the July share price for Boston Scientific Corporation ( NYSE:BSX ) reflect what it's really worth? Today, we will...

Shareholder Returns

	BSX	US Medical Equipment	US Market
7D	-0.3%	2.4%	1.0%
1Y	-8.4%	-21.6%	-12.9%

Return vs Industry: BSX exceeded the US Medical Equipment industry which returned -21.6% over the past year.

Return vs Market: BSX exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is BSX's price volatile compared to industry and market?
BSX volatility
BSX Average Weekly Movement	3.9%
Medical Equipment Industry Average Movement	9.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: BSX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BSX's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	41,000	Mike Mahoney	https://www.bostonscientific.com

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems.

Boston Scientific Fundamentals Summary

How do Boston Scientific's earnings and revenue compare to its market cap?
BSX fundamental statistics
Market Cap	US$58.61b
Earnings (TTM)	US$829.00m
Revenue (TTM)	US$12.33b

70.7x

P/E Ratio

4.8x

P/S Ratio

Is BSX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BSX income statement (TTM)
Revenue	US$12.33b
Cost of Revenue	US$3.77b
Gross Profit	US$8.56b
Other Expenses	US$7.73b
Earnings	US$829.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.58
Gross Margin	69.40%
Net Profit Margin	6.72%
Debt/Equity Ratio	52.0%

How did BSX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BSX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BSX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BSX. This is calculated by dividing BSX's market cap by their current preferred multiple.
What is BSX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$58.61b

BSX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.5x
Enterprise Value/EBITDA	20.9x
PEG Ratio	2.9x

Price to Earnings Ratio vs Peers

How does BSX's PE Ratio compare to its peers?

BSX PE Ratio vs Peers

The above table shows the PE ratio for BSX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	45.6x
EW Edwards Lifesciences	45.2x	11.1%	US$65.8b
BDX Becton Dickinson	38.2x	11.6%	US$72.5b
SYK Stryker	39.3x	14.4%	US$81.6b
ISRG Intuitive Surgical	59.8x	17.2%	US$85.8b
BSX Boston Scientific	70.7x	24.8%	US$58.6b

Price-To-Earnings vs Peers: BSX is expensive based on its Price-To-Earnings Ratio (70.7x) compared to the peer average (45.6x).

Price to Earnings Ratio vs Industry

How does BSX's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Earnings vs Industry: BSX is expensive based on its Price-To-Earnings Ratio (70.7x) compared to the US Medical Equipment industry average (33.9x)

Price to Earnings Ratio vs Fair Ratio

What is BSX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BSX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	70.7x
Fair PE Ratio	49x

Price-To-Earnings vs Fair Ratio: BSX is expensive based on its Price-To-Earnings Ratio (70.7x) compared to the estimated Fair Price-To-Earnings Ratio (49x).

Share Price vs Fair Value

What is the Fair Price of BSX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BSX ($40.94) is trading below our estimate of fair value ($54.16)

Significantly Below Fair Value: BSX is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Future Growth

How is Boston Scientific forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BSX's forecast earnings growth (24.8% per year) is above the savings rate (1.9%).

Earnings vs Market: BSX's earnings (24.8% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: BSX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BSX's revenue (7% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: BSX's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BSX's Return on Equity is forecast to be low in 3 years time (15.2%).

Discover growth companies

Past Performance

How has Boston Scientific performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BSX has a large one-off loss of $475.0M impacting its June 30 2022 financial results.

Growing Profit Margin: BSX's current net profit margins (6.7%) are higher than last year (4.7%).

Past Earnings Growth Analysis

Earnings Trend: BSX's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: BSX's earnings growth over the past year (57.6%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: BSX earnings growth over the past year (57.6%) exceeded the Medical Equipment industry 2%.

Return on Equity

High ROE: BSX's Return on Equity (5.1%) is considered low.

Discover strong past performing companies

Financial Health

How is Boston Scientific's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BSX's short term assets ($5.1B) exceed its short term liabilities ($3.9B).

Long Term Liabilities: BSX's short term assets ($5.1B) do not cover its long term liabilities ($11.1B).

Debt to Equity History and Analysis

Debt Level: BSX's net debt to equity ratio (50.4%) is considered high.

Reducing Debt: BSX's debt to equity ratio has reduced from 80.6% to 52% over the past 5 years.

Debt Coverage: BSX's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: BSX's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Boston Scientific current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BSX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BSX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BSX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BSX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BSX has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure

CEO

Mike Mahoney (57 yo)

10.83yrs

Tenure

US$16,064,039

Compensation

Mr. Michael F. Mahoney, also known as Mike, has been Chairman of Boston Scientific Corporation since May 3, 2016, and is its Chief Executive Officer since November 1, 2012 and has been its President since...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD16.06M) is about average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: BSX's management team is seasoned and experienced (8.6 years average tenure).

Board Members

Experienced Board: BSX's board of directors are considered experienced (7.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: BSX insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31